BBA Task 2

dimanche 28 septembre 2014

Instructions say CDL predicts 100 million miles and that they have no idea how many will choose miles over cash back, then says that we agree to use these assumptions in our pricing. This makes me believe that we agreed to use 100 million miles "earned", but tells us nothing about the percent that choose airline miles.



Other forums I've read have pretty much assumed to use 100 million, however, this makes absolutely no sense to me and incredibly risky. CDL said themselves that they have no idea how many will choose miles, so why assume 100%? Don't think this is part the agreement on what assumptions to use.



I've opted to use a fraction of this 100 million. Anyone else? Don't think the SOA would have said that CDL has no idea the number who will choose miles if there wasn't some uncertainty here, and this isn't clear on what our agreement with our supervisor is.



Thoughts?





BBA Task 2

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